Like barcode and voice data entry, RFID is a contactless information acquisition technology. RFID systems are wireless, and are usually extremely effective in hostile environments where conventional acquisition methods fail. RFID has established itself in a wide range of markets, such as, for example, the high-speed reading of railway containers, tracking moving objects such as livestock or automobiles, and retail inventory applications. As such, RFID technology has become a primary focus in automated data collection, identification and analysis systems worldwide.
Of late, companies are increasingly embodying RFID data acquisition technology in a fob or tag for use in completing financial transactions. A typical fob includes a transponder and is ordinarily a self-contained device which may be contained on any portable form factor. In some instances, a battery may be included with the fob to power the transponder. In which case the internal circuitry of the fob (including the transponder) may draw its operating power from the battery power source. Alternatively, the fob may exist independent of an internal power source. In this instance the internal circuitry of the fob (including the transponder) may gain its operating power directly from an RF interrogation signal. U.S. Pat. No. 5,053,774 issued to Schuermann describes a typical transponder RF interrogation system which may be found in the prior art. The Schuermann patent describes in general the powering technology surrounding conventional transponder structures. U.S. Pat. No. 4,739,328 discusses a method by which a conventional transponder may respond to a RF interrogation signal. Other typical modulation techniques which may be used include, for example, ISO/IEC 14443 and the like.
In the conventional fob systems, the fob is provided a fob identifier. The fob may be activated or powered upon presenting the fob in an interrogation signal provided by a fob reader. Once the transaction device is interrogated, the transponder included in the fob may provide the fob identifier to an authorizing entity who may correlate the fob identifier to a customer account number which is recognizable by a merchant system. That is, the information stored on the traditional fob ordinarily must be translated by an authorizing entity in order for the merchant system to be able to process the transaction request.
The customer account number may be stored on an authorizing entity database. An authorizing entity server may receive the fob identifier and correlate the fob identifier to a customer account number, which is ordinarily maintained in the authorizing entity's system database. Since the customer account number is typically a conventional credit, debit or loyalty account number, the fob may be presented to complete a transaction whereby the authorizing agent translates the fob identifier to a customer account number and provides the customer account number to the merchant system for processing under business as usual standards. The merchant system ordinarily provides the customer account number to a customer account provider which uses the number to locate the corresponding transaction account to be used to satisfy the customer's transaction request.
One of the more visible uses of the RFID technology is found in the introduction of Exxon/Mobil's Speedpass® and Shell's EasyPay® products. These products use transponders placed in a fob or tag which enables automatic identification of the user when the fob is presented at a Point of Sale (POS) device. Fob identification data is typically passed to a third-party server database, where the identification data is referenced or translated into a customer (e.g., user) credit or debit account. In an exemplary processing method, the third-party server seeks authorization for the transaction by passing a transaction request and account data to an authorizing entity. Once authorization is received by the server, clearance is sent to the point of sale device for completion of the transaction. In this way, the conventional transaction processing method involves an indirect path which causes undue overhead due to the use of the third-party server to correlate the fob identification data to a customer account prior to providing the accompanying transaction request to the merchant POS for completion.
A need exists for a transaction authorization system which allows fob transactions to be authorized while eliminating the cost associated with using third-party servers.